CH 6 Q6

You have just negotiated a home mortgage with a principal of

$400,000.

The bank's quoted rate is

3.4%.

You chose a

25-year

amortization and you decide to make

12

payments per year. Each mortgage payment is

$1,976.03.

How much interest do you pay in the first year? Express your answer as a percentage of the total value of your mortgage payments in the first year.

Question content area bottom

Part 1

The interest as a percentage of the total payments in year 1 is

enter your response here%.

(Round to four decimal places as needed.)